The first Indo-German trade agreement was concluded in March 1955. In May 2000, the “Agenda for the Indo-German Partnership in the 21st Century” was signed and laid the foundations for the future.
Germany, Bavaria and India are efficient and reliable economic partners. Indo-Bavarian trade volume amounted to €3.28 billion, with Exports to India €1.57 bn/ Imports from India €1.54 bn in 2021. India is thus the fifth most important Asian trading partner for Bavaria after the People’s Republic of China, the Republic of Korea, Taiwan and Malaysia. A glance at the trade balance sheet shows that the number of Bavarian exports to India is higher than Indian imports to Bavaria.
The bilateral foreign trade volume of Germany and India in 2021 amounted to around EUR 23.4 billion, which equated to the 24th position in the international ranking. An analysis of the trade balance sheet reveals that the number of German exports to India is higher with EUR 12.5 billion more than that of imports from India to Germany with EUR 10.9 billion.
The locations of various global players such as Siemens and Volkswagen, as well as the increased investment from the German medium-sized businesses confirms the importance of India as a trading partner for Germany and Bavaria. At present, there are around 1,500 business relationships between Bavarian companies and India and over 300 Indo-Bavarian joint ventures have already been established.
Bavaria is linked with all important Indian sectors and regions by its representative office in Bangalore. The traditionally strong bilateral relationships are not only confined to business, but also take place within the realm of culture, strategy and politics.
Of the almost 30,400 Indian citizens living in Bavaria, just under half of them live in Munich (2020 figures). There are daily direct flights from Munich to Delhi and Mumbai. Bavaria and Karnataka have been linked by a regional partnership since 2007.
Karnataka – Bavaria Relationship:
- MoU between The State of Bavaria and Karnataka.
- Recognizing the huge potential for strong business and development between the two regions, the Karnataka State Government and the Government of the State of Bavaria has signed a Memorandum of Understanding (MoU) in 2007, represented by the then Honourable Chief Minister of Karnataka Shri H D Kumaraswamy and the then Honourable Minister President of Bavaria, Dr. Edmund Stoiber for enhancing State-to-State co-operation in the fields of commerce, industry, technology, research, infrastructure, tourism and other related areas.
- Dr. G Parameshwara, Home Minister of Karnataka and Mr. Joachim Herrmann, Bavarian Minister of Interior, for Building and Transport signed the Joint Declaration of Intent for the intensification of police cooperation in Munich on 20 June 2016.
- Several positive developments have taken place so far in the political side like establishing their Consulate, opening of Indo Bavarian Science Centre - BayInd in Bangalore, MoU between various Indian and Bavarian Universities consortium represented by Hof University of Applied Sciences, cooperation in the security level between Karnataka and Bavaria and many more.
The representative office of Bavaria in India will continue to support Indian and Bavarian companies on each other’s respective market.